There are a number of practical ways to get started as an investor in the real estate market. For countless individuals, following the fix-and-flip method has proven to be the most rewarding. With this model, you purchase a piece of residential property that requires a bit of work before it can be sold to a prospective homeowner. Since renovations are required, real estate usually costs significantly less than a dwelling that is in perfect shape. Naturally, there are several points to keep in mind with this process. Review these tips to get the most from your experience.
Thoroughly Understand the Current Market
Before you invest in a piece of property, you should become familiar with everything there is to know about your local market. Which neighborhoods are currently the most appealing to buyers and which as poised to be up-and-coming spots in the near future? Do you need specific permits to conduct renovations in this area? If so, how long does it take to acquire these documents? Having the answers to these questions ready to go before you break ground will help you avoid any major snags as you begin work on your investment property.
Learn About Financing Services
Financing is another area to focus on when it comes to fix and flip investments. While these properties do cost less than a traditional piece of real estate, you will still need to put down a significant chunk of change in order to obtain the most profitable pieces of land. When you’re just starting out, you likely don’t have as much capital to work with as someone who has been in the industry for several years. Thankfully, you can boost your cash flow by looking at traditional options like bank loans or alternative financing services like SBA funds.
Know the Exact Costs of Flipping
Finally, be sure you understand how much work will be involved in fixing a piece of property before you make your final decision. Real estate that costs significantly less than market value might seem enticing, but that means you might have to sink a lot of cash into the renovations. The more you spend, the more likely it is you will not see a profit. Be sure to account for expenses that fall outside of the renovation process, too. Everything from legal fees to the costs of hiring an inspector should be factored into the total.
The fix-and-flip process of purchasing real estate can yield a number of benefits for investors. As long as you understand the ins and outs of the flipping process, you should be able to see the results that you are after.
Running a small business isn’t easy and comes with its fair share of challenges. That being said, if you approach your new venture with the right attitude and mindset, there is a good chance you can make it work in your favor. If you’re on a tight budget and don’t have too many financial resources at your disposal, these small business tips should help you get started on the right foot.
Hire the Right People
Hiring the right employees is an important part of keeping your small business on track. When you are just getting started, it may not be possible to offer competitive salaries and benefits packages. You will probably have to hire people who are willing to work for less money than they could earn in other fields. If you have the ability to find and hire great people, though, you’ll have a competitive advantage over other small businesses that can’t afford to hire the best talent.
Have a Growth Mindset
Your small business will likely need to grow at some point in its lifespan. You may decide to scale up your operations or find ways to increase your earnings with the help of contractors. You’ll probably have to deal with a few challenges along the way. While keeping a positive mindset and maintaining a growth mindset will help you overcome such challenges, it will also help you succeed in other areas. It is much easier to attract investors and partners when they see that you’re willing to take calculated risks to grow your business.
Don’t Skimp on Marketing
Marketing is an important investment that will help you generate more customers. If you’re able to find ways to cut corners elsewhere, you can easily make up for the costs of marketing with a few successful campaigns. It’s not always easy to know where to start when it comes to marketing. You can take a look at some of the best marketing campaigns of all time to get some inspiration. You can also hire a marketing consultant to help you come up with an effective marketing plan. Whatever you do, make sure that your marketing efforts are consistent with your brand.
It’s not easy to start your own business but the rewards can make it all worthwhile. Make sure you’re prepared for some challenges and sacrifices before taking the leap. By following these small business tips, you may find success.
In today’s digital marketing world, it can seem nearly impossible for your business to stand out from the crowd. After all, the advent of the internet made it possible for millions of other like-minded businesses to not only saturate your field in the online market, but to reel, the customers, you’re so desperately seeking for your own company.
Thankfully, however, there are proven strategies that can help you gain the upper hand. Here are three social media marketing techniques you can embrace for your own company to not only gain a wider audience and generate more leads but to maintain a loyal brand community for years to come.
1. Design a Well-Crafted, Long-Term Branding Campaign
When you’re trying to lure in new customers, sending out content in various forms across your social media pages is key. However, this doesn’t mean you should just send through haphazard, random materials without a plan in mind. Take the time to flesh out a highly-detailed marketing plan that acts as a mastermind or backbone for your long-term goals. Make sure every component showcases your brand’s mission, values, and principles so that they contain a singular message for your audience. Meanwhile, while visual aids are undoubtedly important, don’t go overboard with styles and designs that will confuse your potential customers. Keep it beautiful yet simple, and interject explainer videos whenever possible for a greater boost in lead generation.
2. Use Your Employees and Company Culture for Brand Awareness
Your hard-working, dependable team of employees does everything for the sake of the company’s success. Therefore, why not encourage them to become brand ambassadors as part of your social media marketing strategy? Having individuals within your business posting, sharing, and promoting brand materials can help circulate and spread awareness of your brand to a larger audience for greater lead generation results.
3. Engage With Your Customers On a Personal Level
With so many similar businesses sending out ad after ad looking to make a sale, customers are well-aware of sleazy marketing tactics that ask for nothing but their money. Therefore, it’s important to engage with your audience one-on-one to build a deeper, more personalized connection that leaves a lasting impression. Use data and social listening tools to address the needs of your followers. Monitor your online reputation and respond to those who have had a bad experience with a positive approach for better customer service.
With these clever social media marketing strategies in mind, you can learn to quickly improve your company’s outreach in no time, helping you to stand out from your competitors with ease. Contact WHW Capital to learn more about how social media strategies can boost your business.
Working capital is essential for businesses of any size to see continued success. When you operate a small company, however, it can prove more difficult to manage your cash flow. Since you require capital to cover everything from paying your monthly expenses to investing in future opportunities for growth, you need to remain mindful of your spending habits at all times. Look over these suggestions and gain a better understanding of how to appropriately manage the flow of cash for your small business.
Pay Attention to Your Receivables
Maintaining strong relationships with your customers is important for your brand to stay afloat. Unfortunately, this also means you might look the other way when it comes to the negative behaviors your client’s exhibit. If customers are not paying for the services or goods you’ve provided in a timely manner, it can have a significant impact on your access to capital. To encourage prompt payments, consider tactics like requesting deposits on large orders to switching to an electronic method of billing. Accounts receivable financing services can also prove useful when payments become significantly delayed.
Open a Credit Line
Having funds available for emergencies can be a lifesaver for your small business. One simple way to guarantee a financial safety net is by opening a line of credit. Unlike loans, which are delivered as a lump sum and must be repaid immediately, a credit line can be used at your leisure. Should your cash flow stall, you can utilize your line of credit to cover any pressing expenses that come about. Some credit lines also come with perks for how often you use them, so conduct heavy research into your options in order to discover the most rewarding fit.
Prioritize Your Payments
There are a ton of monthly expenses connected with running a small business. Though it can seem like all of these costs hold equal importance, some are actually more pressing than others. To avoid spending all of your working capital in one swing, prioritize your payments and handle them as the funds become available. Payroll should always be covered right away, for example. Other expenses like paying your internet provider are a bit more flexible, with most larger companies allowing clients the option of moving payment dates to a time that works best for them.
In order for your small business to stay one step ahead, you must have a plan for managing your cash flow. By establishing a strategy early, you can guarantee access to working capital at all times.
Business owners often have two types of credit riding on the company’s success: personal credit scores and business credit histories. Leveraging your personal credit on starting your business is typical; your company does not have a credit profile yet, but struggling to pay business bills on time should not hinder your ability to refinance your mortgage or buy a new car. With invoice factoring or accounts receivable financing, you can make reliable payments on time to build your business credit profile and repair your personal credit history.
About Business and Personal Credit Scores
Your credit profile, business or personal, depends mainly on successfully repaying debt on time and not using too much of your credit at once. For instance, if your credit card has a limit of three thousand dollars, you do not spend more than one thousand dollars monthly. If you pay the bill in full and on time, your profile will show more favorably than if you have a limit of three thousand dollars, are constantly at the limit and skip one in four payments. If your business has less than three years of credit history, you are unlikely to have a robust profile and may need to leverage personal credit to finance large purchases.
Working With a Factor
Factoring, or A/R financing, involves working with a third-party lender, called a Factor, and securing an advance with your invoices as collateral. This process means that you will leverage future payments for work already done to get cash in time for your monthly bills. The fee for this financing type is generally low, and you can receive a large percentage of the invoice value as an advance. The remaining value is held as a reserve, and part of that reserve will be the financing fee.
Boosting Your Credit Profiles
You can use A/R financing to boost your credit profiles by paying your bills on time, increasing your capital for better cash flow, or saving for large purchases. This funding can boost your personal credit score because any loans you have taken out for your company will be repaid promptly, and it can increase your business credit history by showing a steady repayment of debt.
Factoring is an excellent way to get the funding you need in the short term to take advantage of time-sensitive deals, purchase the supplies you need for future projects and repay the business debt on time. This practice can boost your credit profile and help you qualify for everything from a business line of credit to a mortgage loan.